Note 9 - Contingent consideration receivables

9 Months Ended

Sep. 30, 2012

Contingent Consideration Receivable Disclosure [Text Block]

9.   Contingent consideration receivables

	Amount
	US$(’000)
Balance as of December 31, 2011 (audited)		159
Recognized from acquisition of VIEs		-
Changes in fair value of contingent consideration receivables recognized		-
Exchange translation adjustment		1
Balance as of September 30, 2012 (unaudited)		160

Contingent consideration receivables arose from certain “make good” provisions entered into by and between the Company and former stockholders of the VIEs upon the acquisition of the Company’s consolidated VIEs. These “make good” provisions provide that if the acquired VIEs’ audited pretax profit or after tax profit for the year ended December 31, 2012 increases by less than a certain amount or percentage as compared to that of the prior year, then the former VIE stockholders will be required to compensate the Company in cash for the difference between target pretax profit or after tax profit and the actual pretax profit or after tax profit, as applicable.

As of December 31, 2011, the aggregate amount of the fair value of the contingent consideration receivables for the acquisition transactions that occurred in 2011 was approximately US$159,000. The Company reassessed the fair value of these contingent consideration receivables as of September 30, 2012 for the make good arrangements for the year ended December 31, 2012, based on their historical performance and other relevant assumptions, and determined that no material changes in fair value of these contingent consideration receivables incurred during the nine and three months ended September 30, 2012.